Denis O'Donovan (Fianna Fail) | Oireachtas source

I formally second the motion and welcome the Minister to the House. While it is easy to criticise Ministers, some matters are outside their control. As the Opposition, however, it is our duty to highlight the problems facing farmers. To be positive, I acknowledge the Minister's work in trying to open up international markets, etc. It is a pity that such work is impacting on those who are trying to finish cattle, particularly those in the bull beef market where there seems to be an impasse and a poor price return.

A key element of Food Harvest 2020 is the target of increasing beef kill from 30,000 per week to 40,000 per week. However, this target is not being met. It cannot be achieved overnight, but the current kill rate appears to be between 31,000 and 32,000. Factories are telling farmers to delay the introduction of cattle by four or six weeks, placing an extra strain on farmers and creating extra costs. As the Minister is aware, the window of opportunity for processing bull beef is between 14 and 16 months.

The steer and heifer prices, which have been reasonably stable since Christmas, have fallen in the factories. Is there anything the Minister can do at factory level to ensure consistency of prices? At present, there is a fall back. I know a young farmer who took part in an initiative. He had held on to 30 bull calves, as he was in a project which was promoted by Teagasc and the IFA. They are now 18 months old and he is having difficulty getting rid of them. The trouble at that stage is that it is not good protocol to castrate these yearling bull calves or weanlings, so he is waiting. As it was an initial project that he commenced, if he cannot offload these cattle promptly and quickly, he will be at a huge loss because it costs money to hold on to them each day.

Last year we were in the House discussing the appalling winter we had experienced and particularly the spring of 2013. For the farming community, although the past winter has not been as severe and there is enough fodder available, it has been the wettest winter since records began.

I am also concerned that some factories are introducing a penalty of 20 cent per kilo on animals over 100 kg. Winter finishers cannot endure that loss. In Italy, R grade male animals are making the equivalent of €4.24 per kg, including VAT, which is down 1.5% on last year. It is marginal. In France, the R grade males are basically making the same price as last year, while in Germany there is a slight decrease. In Spain, the price is the same as last year. It is important the Minister challenges the factories on their commitment to paying a viable cattle price to farmers. There appears to be a monopoly in respect of the factory outlets. They seem to be calling the shots and are not listening to farmers. I am not sure if they are even listening to the Minister at this stage. It is important to highlight that.

The Minister should bring Teagasc, Bord Bia, the Irish Cattle Breeding Federation, ICBF, the factories and, most important, farmers around the negotiating table on this issue. Perhaps by knocking heads together he will be able to overcome this impasse.

The agrifood industry is very successful and the Minister has done many positive things in that area. This motion is not tabled to criticise the Minister for everything that has gone wrong, but there is a crisis at present with the beef cattle price. This will have a knock-on effect down the line, whether it is on suckler cows or the price of calves, if it is not resolved.

There is another concern which farmers have raised with me. An allegation has been made, and the Minister might be able to confirm if it is true or otherwise, that the Department of Agriculture, Food and the Marine AIM - animal identification and movement - database is being used by the factories to monitor the livestock numbers on individual farms. If that is happening, it would be a serious breach of both protocol and of the database.

The Minister made a positive investment of €52 million per annum through the new €80 per cow beef genomics scheme for sucklers. I welcomed it previously in the House, although I am not too sure how it will operate on the ground. There are some questions about it. However, the fact the money is available is a positive step. Will the Minister ensure the benefits of this investment will not be wiped out by the fact there appears to be an impasse at present with the current price of beef, the price at the factories and the difficulty for farmers in getting rid of beef cattle?

I acknowledge that the Minister has travelled widely, to China and other far-flung countries, in an effort to open up markets. However, it is critical that the Minister take the bull by the horns, if he will excuse the pun, and tackle this issue head-on. If it is left to stagnate, there will be a ripple effect apart from the problem at present. Beef farmers and farmers who have put a great deal of money into finishing cattle are feeling the pinch. It is extremely worrying for them. I hope the Minister will have positive news for us in his response. We have not raised this issue willy-nilly. It is a concern that has been brought to us by virtually all the farming organisations and individual farmers. It is a matter of deep concern. Regardless of whether the Government side of the House agrees with the motion, I believe the merits and sincerity of the motion must be acknowledged.